After the Government presented a corrected text of the Omnibus Law with the changes that emerged from negotiations with the opposition, and with the expectation that Javier Milei will be able to unblock the legislative front this week, Argentine assets responded with increases.
On Wall Street, ADRs extend their streak jump of more than 6% in hard currency. Dollar bonds follow the same trend. The market’s eyes are focused on the progress that the Milei government can make at a political level, which is fundamental for addressing the range of economic reforms it proposes.
“The expectation of parliamentary progress on the Omnibus Law after the latest negotiations is welcomed by investors, not only through a rebound in financial assets but also a respite in financial dollars, given that over “It’s combined with a northern climate that is more conducive to risk appetite.”commented the economist Gustavo Ber.
For Ber, the market understands that if the Omnibus law were passed, it would be “a political triumph”, which could also incentivize investments at a time when it is crucial to mitigate the high costs of stagflation with greater confidence regarding future scenarios. “Among these there would be signs of a slowdown in strong inflation and a Roadmap as to when this phase will lead to a comprehensive stabilization plan that leaves the emergency behind,” he noted.
The Argentine newspapers that are most successful in New York are those of Telecom, which reach 6.6%followed one step lower by Edenor and Banco Galicia, who won 5.6%. YPF has a more moderate performance: once its privatization is excluded, its ADR increases by 2%.
The positive effect affects Merval: the main indicator of the Buenos Aires Stock Exchange after midday it increases by 3.2%.
The local stock market accumulates a gain of more than 30% so far this month, just behind the improvement that cash settlement had in the first three weeks of January.
“Some time ago we warned that the Merval could be used as hedge exchange rate in the short term, given the uncertainty that the measures to be applied would generate, while In the long term we have seen it as a vehicle for appreciation if a normalized economy is achieved“, they explained in the PPI.
“Given recent events, it seems that our visualization in the short term it is not wrong, beyond the fluctuations that can be perceived on a daily basis (we also warn about the limits and risks implicit in giving this type of application to local actions)”, they added.
In the debt segment, the improvements come from the Global 2029 side (+4.2%); Global 2046 (+2.9%); Global 2041 (+2.4%); the Global 2030 (+2.1%) and the Bonar 2030 (+1.9%). Meanwhile, the only one that is losing is Global 2038 (-1.6%). In this contextthe country risk breaks through the threshold of 1,950 points and stands at around 1,936 units.
Source: Clarin
